Ways to put money aside for later? Ways to save if midlife age?

I'm always confused about retirement. I'm 26 and I have both a 401k and a Roth 401k. For the normal one I contribute 7% and the company matches up to 6%. And for the Roth I match 4%. My goal is to retire a millionaire. But like ano poster said I probably will never fully retire.

I want to open an IRA also. It's hard cause I'm the only one working in the househo so I can only do so much.

 

Never too late. Start by taking 7-10% of your income and stick it in a company matched 401K. You can always move that money to a higher yield IRA later without penalty.

Ideally if you can get 10% in there now, you’ll have the added benefit of compound interest when you reach retirement. If you keep waiting and putting it off, you will delay your retirement.

You can also search savings accounts with high yield interest rates. Not sure what the current going rate is but Capitol One has a commercial out boasting the highest interest rate in the country. Start stockpiling cash in there. When the interest rates dip, pull it and put it in the next highest available interest rate savings account you can find (just watch out for fees).

Penny stocks arent a bad option either. Low risk dollar investment with a couple thousand dollar return. You can use those to really stack a savings account quickly. Just do your research.

 

you're doing pretty good, really. I just punched some numbers into a calculator, and if we assume you are making 40K a year, and invest in mutual funds at an average annual return of 10% (that's 1% below the market average), you will have 4 million $ at age 66. That's assuming your income will remain the same (which it obviously won't).

At this point, I would not put away any more for retirement. I'd focus on getting rid of all consumer debt and the mortgage. Once that's done, you'll have some free money to put towards other goals, including retirement.

You're really doing good already. Fret not.

 

Thanks I appreciate it. Yea I make more then 40k. Actu double that. And that what my plan is to totally focus on all that. I appreciate the advice.

 

One huge point, and a massive kudos to you is the fact you're starting so young. You are going to be very far ahead of alot of people

 

Thank you, I'm kinda self teaching myself all the terms and everything. Eventually I want to get a financial advisor. And possibly get a passive income via investing. Thats down the line tho.

 

Don't forget a HSA account.

 

If you have a spouse that does not have employment outside of the home, an IRA can be set up for them.

ROTH accounts are also good to use.
These are post tax money on deposit, and not taxed on withdrawal.

 

I have an IRA account set up with E-Trade. Just haven't put money in yet. Wanna wait till everything is paid off before I start another retirement account.

Everyone thinks I'm crazy when I try and talk about this. Can never keep anyone's interest ha. Doesn't help I basically grew up way below poverty and had abusive parents so no help there ha

 

If you have the account, start putting money in it.
Most have a minimum deposit, like $100 . So if you only can do that every other month, it starts adding up.